16
JUNE/JULY 2013 SA MINES & ENERGY JOURNAL
FEATURE
Copper
Iron Ore
Gold
Uranium
Mineral Sands
Coal
Silver
Lead
Zinc
Oil
Volume
58.2 Mt
1,925 Mt
87.8 Moz
940 kt
12 Mt
2,860 Mt
11 kt
~2 Mt
~1 Mt
2,000 PJ
%ofAUS
67%
5%
30%
78%
5%
8%
21%
~5%
~1%
5%
Value
$146 Million
$78 Million
$10 Million
$33 Million
$7 Million
$4 Million
$10.3 million
$10.3 million
$10.3 million
$174 Million
Volume
304 kt
9.8 Mt
383,000 oz
4,441 t
587 kt
2.3 Mt
1.8 Moz
10.4 kt
21.5 kt
4.3 Mbbl
Value
$2,126 million
$983 million
$644 million
$351 million
$434 million
$80 million
$60 million
$15 million
$26 million
$619 million
Value
$2,162 million
$1,069 million
-
$350 million
-
-
$106 million
$410 million
$55.8 million
-
Commodity
Resources
(Economically demonstrated
resources; 2011)
Exploration spend Production
Exports
SA's well established uranium
industry is on a much clearer
footing. Home to the world's
largest uranium deposit and in
possession of 25 percent of the
world's identified recoverable
uranium, expansion of this
industry is inevitable as global
demand looks set to increase.
Three mines are currently
producing uranium in SA, with
another four at well advanced
stages of development, including
the Four Mile project near
Heathgate's Beverley uranium
mine which is expected to
commence production this year.
Twenty-seven companies are
actively exploring for uranium
in the State at present, with
many other deposits identified.
Mineral sands also has a firm
grip in SA, with the world's
largest zircon producer, Iluka's
Jacinth- Ambrosia mine, located
in the State's far west. The
mineral experienced lower
demand last year providing
challenges for the company,
which responded by reducing
capital spending and other costs,
while committing $8 million to
additional exploration in the region
over the remainder of this year.
The mine has managed to retain
production at normal levels and
credits the State Government
for providing timely approvals to
allow a larger quantity of heavy
minerals to be stored on site.
Iluka anticipates an
improvement in the zircon
market over the remainder of the
year. Steve Wickham, General
Manager Global Operations at
Iluka, said last year's low cycle
corresponded with below-trend
global growth and destocking.
"Signs of improved demand for
zircon from China and the United
States were evident in the first
four months of 2013,
" he says.
Murray Zircon's Mindarie mine
produces a variety of mineral
concentrates and has demand
covered -- with its zircon heading
directly to its Chinese owners'
processing facility. The mine was
officially launched last month.
SA's burgeoning gas industry
is one resource unlikely to
suffer from any demand
volatility in the near future.
The State's unconventional gas
'revolution' is now well under way
with the Cooper Basin the
most likely Australian reserve to
generate significant unconventional
production growth in the short term.
Barry Goldstein, Executive
Director of the Energy
Resources Division at DMITRE,
is optimistic about the bright
future for unconventional
gas resources in SA.
"I believe there will be
more firms entering, wanting
to partner with Cooper Basin
companies and the competition
will be wonderful,
" he says.
The announcement this
February that Beach Energy
will farm out unconventional
gas exploration acreage to
international giant Chevron
supports the view that the big
players have SA in their sights.
Under the deal, Beach Energy
will transfer to Chevron up to
60 percent of interests in a fully
owned petroleum exploration
licence in SA and its full 60
percent stake in an authority
to prospect in Queensland.
The company will potentially
receive US$349 million for both
permits over several years.
According to Beach Energy's
Managing Director Reg Nelson,
the deal "vindicates in many
ways the vision that the
company has in relation to the
potential of unconventional
gas in the Cooper Basin"
.
The other major players joining
in the search for unconventional
gas reserves in the Cooper
Basin are Santos, Senex Energy,
Drillsearch Energy, Ambassador
Oil & Gas and Strike Energy.
Projections by DMITRE estimate
that there will be three exploration
drilling rigs operational in 2014, five
in 2015, jumping to nine by 2016.
A Roundtable for
Unconventional Gas Projects in SA
was convened in 2011 comprising
members from petroleum
companies, government agencies,
peak representative bodies
and universities. Roundtable
discussions led to the release
of a "Roadmap" document in
December last year, detailing125
recommendations and actions are
now being taken to address these.
"We need to ensure that our
development of unconventional
gas is world class, and competitive
in terms of gas deliverability
costs and benign environmental
outcomes,
" Mr Goldstein explains.
Other exploration projects are
under way both on and offshore
SA, with companies seeking
conventional gas and oil reserves.
BP Exploration has been granted
Processing plant flotation cells at Hillgrove's Kanmantoo mine.
Image courtesy of James Knowler and Hillgrove.
South Australian Resources 2011-2012